Mr. Dan Hilton reports

DATAWIND PROVIDES UPDATE REGARDING ANNUAL FILINGS

DataWind Inc. is providing its required biweekly default status report further to its news release dated June 29, 2016, announcing a delay in the filing of its audited annual financial statements for the year ended March 31, 2016, the related management's discussion and analysis, certificates of its chief executive officer and chief financial officer, and its annual information form.

On July 6, 2016, in response to an application made by the company in connection with the company's delay in filing the annual filings with Canadian securities regulators by the June 29, 2016, filing deadline, a customary management cease trade order relating to the trading in securities of the company by the company's CEO and CFO was issued by the Ontario Securities Commission. The MCTO prohibits all trading in securities of the company, whether directly or indirectly, by the company's CEO and CFO. The MCTO does not affect the ability of other shareholders to trade in the securities of the company. However, the applicable Canadian securities regulatory authorities could determine, in their discretion, that it would be appropriate to issue a general cease trade order against the company affecting all of the securities of the company.

The company's board of directors and management confirm that the audit is continuing and that they are working diligently with the company's auditor to complete the annual filings. The company is not aware of any disagreements with its auditor that are contributing to the delay in filing.

In connection with the issuance of the MCTO, and in accordance with its obligation to provide biweekly updates under the alternative information guidelines set out in National Policy 12-203 (cease trade orders for continuous disclosure defaults), the company confirms that it has fulfilled its stated intentions regarding compliance with such alternative information guidelines and that, except as previously disclosed, there have been no material changes to the information relating to the company's delay in making the annual filings or its other required filings under applicable Canadian securities laws or otherwise concerning the affairs of the company.

Details regarding when the earnings release will be issued, when the conference call will be held and when the annual filings will be filed will be provided in due course.

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